On February 22 we mentioned that the Biotech HOLDRs ETF was trading within a descending channel and that it would be interesting to see if it could head higher. As you can see from the chart below, the bulls were able to push BBH above the trendline today, which is now being used by traders to confirm buying opportunities found in other biotech stocks. For example, as you can see from the chart of TEVA (lower chart), it has also broken above the upper resistance of a descending trendline and now looks like it will go higher.
We've also added the MACD to the chart of TEVA, which has recently crossed above its signal line. This bullish crossover will also be used by the bulls as confirmation of further upward momentum